Central banks buy gold at record pace: Goldman Sachs predicts $3,700 by year-end

Central banks worldwide are driving the gold market surge. Goldman Sachs estimates they're buying 80 tons per month, worth $8.5 billion at current prices. Most purchases are secret and private. Data from the World Gold Council shows central banks and sovereign wealth funds are collectively buying 1,000 tons annually, accounting for a quarter of global production. A survey by HSBC found over a third of respondents plan to buy more gold in 2025. Gold often serves as a safe haven during times of geopolitical tension, and central banks are increasingly concerned about relying on the US dollar. The National Bank of Kazakhstan has returned to buying gold this year, with plans to increase reserves. Goldman Sachs believes central banks' gold-buying spree will continue, supporting its year-end price target of $3,700 per ounce.